The global pandemic has had an effect on most aspects of everyday life. This includes the world of sports betting. There has been a serious lack of live sporting action across the globe which has reduced the number of betting opportunities.
This has made it more difficult for sportsbooks like Jeetwin which might become one of the biggest sportsbooks in India, to offer the full range of betting options. This fact, taken in isolation, could lead to severe financial consequences for betting companies; even respected operators like Jeetwin. Let’s take a closer look at why this is the case.
Financial issues for betting companies
You only need to see the situation in New Jersey, and other US states like Indiana, to know that there have been financial consequences for betting companies as a result of the cessation of live sports.
In New Jersey, the year-on-year revenue of the sports betting industry was halved in March. The situation in Indiana was even worse. There was a 60% reduction in sportsbook action between February and March.
The situation was compounded by the fact that land-based casinos in New Jersey were also instructed to close.
It’s not just in the US that betting companies have been affected. In the UK, 75% of betting industry revenue comes from football and horse racing. These sports were interrupted as a result of COVID-19, thereby having an adverse effect on betting revenues.
Not all bad news
Despite the issues affecting betting companies, there has still been some online action available. Internet gaming profits were $64.8 million in New Jersey in March. This was a 65.6% increase on profits for March the previous year.
In fact, the Internet has most definitely come to the rescue of the betting industry. Activities such as esports have been the subject of interest from bettors. The esports leagues have taken advantage of this. They are doing all that they can to keep people engaged even after regular sporting activity returns. This includes content like NASCAR’s iRacing events which have been hugely popular.
In addition, people are spending more time playing at betting sites. This is a side of gambling that has started making more money since the pandemic took hold.
The future for betting companies
Esports and other activities cannot entirely fill the void in the sports betting industry. However, it’s likely that they will help to keep the industry going until the complete sporting experience is restored.
This is already starting to happen as many sports return across the world. Even if fans are not attending events, or are unable to bet in-store, they can still bet on any events which take place. They can simply pick up a phone or go online.
As more sports return, so people will return to their betting activities, even if they need to bet online. This means that the future looks bright for betting companies as they begin to make a good recovery from any losses that they have suffered.